Joyners

The Joyners project is located 40km west of Wiluna in Western Australia and covers the eastern part of the Joyners Find greenstone belt. The project is a joint venture with GWR Group Limited and forms a part of GWR Group’s much larger 126 million tonne Wiluna West iron ore project. At Wiluna West, direct shipping grade (DSO) hematite iron ore averaging around 59% iron has been defined in a series of deposits associated with banded iron formations.

GWR Group controls an 80% interest in the two joint venture tenements (M53/1078 and E53/1089) with Jindalee retaining a 20% equity position, free-carried through to completion of a Bankable Feasibility Study.

In May 2011, GWR Group announced a revision of estimated iron ore resources for Wiluna West Project, including the joint venture area, referred to as Jindalee Joyners.

Indicated and inferred resources contained within the joint venture project are estimated to total 7.2 million tonnes at an average grade of 63% iron. Almost half of this resource is in the indicated category.

DEPOSIT

CATEGORY

TONNES

Mt

Fe%

P%

Al2O3%

SIO2%

LOI%

Joyner’s North

Indicated

3.3

63.6

0.04

2.0

4.3

1.8

Inferred

3.9

62.5

0.06

2.2

4.8

2.2

TOTAL

7.2

63.0

0.05

2.1

4.6

2.0

Notes: The resource estimate was prepared for GWR by Optiro Pty Ltd These figures are taken from GWR’s announcement dated 24th May 2011 and titled, “Wiluna West Hematite Project – Iron Ore Resource Update”. Certain details of the methodology used to calculate this resource estimate are contained in this announcement.

In late August 2011, GWR Group announced a maiden 69 million tonne proven and probable reserve for their Wiluna West Hematite Project. Included within this reserve is 3.1 million tonnes of high grade (62% Fe) mineralisation in the Joyners North Deposit, representing almost 90% conversion of the indicated resource into reserves. An unspecified percentage of the 3.9Mt in the inferred resource category could also potentially prove mineable, but further infill drilling will be necessary to confirm this portion of the resource.

The details of the Joyners North iron ore reserve is summarised in the following table:

CATEGORY

TONNES

Mt

Fe%

P%

Al2O3%

SIO2%

LOI%

Proven

–

–

–

–

–

–

Probable

3.1

61.7

0.04

2.5

5.7

2.3

GWR Group is currently advancing various options towards commencing development of their Wiluna West Project, including early development of the highest grade resources for export through the port of Fremantle.

GWR Group’s Wiluna West project area showing, the location of the main resource areas.